XAU/USDtouched its lowest level in over three months this week before aggresively rebounding from just below the 1x1 Gann angle line of the year’s closing low at 1260

Our trend bias is negative, but a weekly close over the second square root progression of this week’s low at 1322 will shift it to positive

The 1x1 line of the year’s low now at 1265 is important support and a close below this level is needed to signal a resumption of the broaer decline

Some minor turn windows are seen next week

A weekly close over 1322 will turn the technical outlook in the metal much more constructive

Weekly XAU/USD Strategy: Square here. May look to initiatiate tactical gold longs on a weekly close over 1322.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

XAU/USD

*1265

1285

1316

*1322

1350

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved

Please note the information on this website is intended for retail customers only, and not for any Eligible Contract Participants (i.e., institutional clients) as defined in the Commodity Exchange Act §1(a)(12).